High Performance in the International Freight Forwarding Industry—Keeping Pace with Logistics Trends

Accenture research shows growth in the international freight forwarding industry will continue and there are three building blocks of high performance that can help keep pace with logistics trends.

Logistics trends, such as competitive trade routes and falling freight rates, will continue to affect the industry’s bargaining power with shippers. Freight forwarding industry players will need to meet customer demands by developing attractive solutions even if that means outsourcing key services.

Our research shows that high performers in international freight forwarding have a controlling presence in key growth markets and the flexibility to respond swiftly and innovatively to the evolving needs of the customer.

Logistics trends that continue to impact the international freight forwarding industry and contract logistics sector include:

Changing customer behavior and expectations

Globalization of the industry’s four core customer segments—health care and pharmaceuticals, electronics and technology, automotive and industrial equipment, consumer packaged goods and retail

Increasing demand from emerging markets

The industry’s ability to offer new and value-added services, such as warranty processing, returns management and light manufacturing, acts as a key differentiator. Leading players in the freight forwarding industry focus on integrating specialized service solutions, building scale and expanding—both by acquiring other players and investing in new logistics infrastructure and customer-facing technologies.

Key Findings

High performers in the international freight forwarding industry and contract logistics sector have:

Managed a compound annual growth rate (CAGR) of 13.4 percent over the past three years, and a 7.5 percent return to shareholders over the past five years.

How can companies achieve superior capabilities and keep up with the changing freight trends? We have identified the following three building blocks for high performance in this industry:

Market Focus and Position: High performers have a strong presence in the key emerging growth markets, such as Brazil, Russia, India, China and Mexico, as well as control over the most profitable trade lanes.

Distinctive Capabilities: High performers possess expertise in customer industries and flexible business models. They use customer-facing technologies to empower their customers by offering them end-to-end visibility across the supply chain.

Performance Anatomy: High performers constantly work on achieving operational excellence and improving productivity. They also have robust internal information technology capabilities.

Analysis

Are you ready to keep pace with logistics trends?

Accenture research shows that the high performers in this industry owe their success to a combination of dominance over profitable trade lanes; strategic growth in key emerging markets; and business models that are supported by operational excellence and designed both to empower customers and to develop expertise in their industries.